Part, but not all, of SEI
] dodged a legal bullet this week. Yet another part of SEI is still under fire in the same battle.
On Wednesday a federal judge dismissed
the parts of a mutual fund fee lawsuit, Curd v. SEI
, that were leveled against SEI Investments Global Funds Services (which does back office work for SEI's mutual funds). At the same time, the judged denied a request to dismiss the parts of the case that target SEI Investments Management Corporation (which is the investment advisor to SEI's funds); that part of the case will move on.
of Ryan & Maniskas, who is representing the SEI Funds in the case, referred press inquires to lead plaintiff's attorney Stephen Oddo
of Robbins Arroyo. MFWire
could not immediately reach Oddo, Morgan Lewis & Bockius partner Gordon Cooney
(who is representing the funds), Dechert associate Emily Shea
(who is defending SEI), or an SEI spokesperson for comment on the rulings.
The lawsuit, first filed in December 2013 and amended
in October 2014, accuses SEI of charging excessive fees by keeping too high a percentage (40 percent) of its management fees (versus the amount it pays out to the funds' subadvisors) and by not having breakpoints for reducing the funds' fee rates as AUM rises. The suit involves five SEI funds: the SEI International Equity Fund
, the SEI High Yield Bond Fund
, the SEI Tax-Managed Large Cap Fund
, the SEI Tax-Managed Small/Mid Cap Fund
, and the SEI Intermediate-Term Municipal Fund
The ruling this week was issued by U.S. District Court Judge Anita Brody, of the U.S. District Court for the Eastern District of Pennsylvania. SEI is based in Oaks, PA.
Neil Anderson, Managing Editor
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